The Trump administration has added 407 product categories to the list of “derivative” steel and aluminum goods covered by Section 232 tariffs, making their steel and aluminum content subject to a 50% duty.
The action applies to a wide range of items, including wind turbines and parts, mobile cranes, bulldozers and other heavy machinery, railcars, furniture, compressors, pumps, and hundreds of other products.
Under Secretary of Commerce for Industry and Security Jeffrey Kessler stated: “Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention – supporting the continued revitalization of the American steel and aluminum industries.”
The department also extended the tariffs to imported parts for automotive exhaust systems, electrical steel for electric vehicles, and components for buses, air conditioners, and household appliances such as refrigerators, freezers, and dryers.
Steelmakers including Cleveland-Cliffs (NYSE:CLF) and Nucor (NYSE:NUE) had pressed the administration to expand the tariffs to additional steel and aluminum auto parts. However, a group of foreign automakers urged the department not to add the parts, warning that U.S. producers lack capacity to meet current demand.
According to Reuters, Tesla (NASDAQ:TSLA) unsuccessfully asked Commerce to reject a request to add steel products used in electric vehicle motors and wind turbines, saying there was no U.S. capacity to produce the specialty steel needed for its drive units.